Purdy Homes News

Happy 2010!

What is with our Real Estate market this year?
2010 is going to be a good year for Real Estate. Why? Let's go back a couple years…

In 2008, Buyers were afraid to buy as the market seemed to be plummeting, and Sellers were not willing to sell their homes for the prices homes like theirs were going for.

In 2009, prices had fallen so much, and interest rates were so low, that Buyers were coming out of the woodwork…at least at entry level prices. (Entry level prices differ in each community/city). 1st time Buyers were given a hefty tax credit if they bought a home. There were lots of foreclosures and tons of short sales. It was difficult for a normal seller with equity to compete price-wise. As these foreclosures and short sales closed escrow, they brought comps, and thus, prices down. Appraisers had to include foreclosures and short sales as comparables when they appraised a property. Loans were hard to get as lenders checked and double checked a borrower out. Sellers didn't sell unless they had to because prices had come down so much. This decreased the available inventory.

Now, here we are 2010…. Buyers are buying and Sellers have accepted that their property values have come down. Everyone knows interest rates won't stay this low forever and the tax credit has been extended to all homeowners who haven't bought in the last 5 years. No one expects values to rise like they did the first half of the decade. People are buying to have their own place to live and call home, not for fast appreciation.

Yes. 2010 will be a healthy year… Call us any time you have a Real Estate question! We are more than happy to help!!

Purdy Homes